A Balance of Payments (BOP)is

question 20

Multiple Choice

A balance of payments (BOP) is

• A) the difference in exchange rates between two currencies.
• B) a register of all trade between two nations.
• C) a record of all payments between one nation and the rest of the world.
• D) the arbitrage potential caused by difference in real prices of goods in different countries.
• E) the account of all payments for goods and services from one nation to another.

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Definitions:

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a period.

Accounts Payable Turnover

A financial ratio that measures the rate at which a company pays off its suppliers by comparing net purchases to average accounts payable during a period.

Accounts Receivable Period

The Accounts Receivable Period is the average number of days it takes for a business to receive payments from its customers for goods or services sold on credit.

Accounts Receivable

Receivables from customers for goods or services provided but not yet compensated.